Document background
The Simple Share Purchase Agreement is a fundamental legal document used in Saudi Arabia for transferring ownership of shares in private companies. This document type is particularly suitable when parties are seeking to execute an uncomplicated share transfer without the need for extensive warranties or complex completion mechanisms. It should be used when the transaction involves a straightforward sale of shares where both parties have conducted appropriate due diligence and are comfortable with basic warranties about share ownership and authority to sell. The agreement must comply with Saudi Companies Law, Sharia principles, and relevant regulations from the Ministry of Commerce. It's commonly used in smaller private company transactions, family business transfers, or situations where the buyer has existing familiarity with the company's operations. The document typically includes essential elements such as party details, share specifics, purchase price, payment terms, and basic warranties, while remaining adaptable to various business sectors and transaction types.
